The Influence Of Environmental Pollution On Foreign Direct Investment

With the acceleration of economic globalization,FDI plays an increasingly important role in China's economic development.Foreign direct investment can not only help solve the problem of capital shortage in the process of domestic economic development,but also further promote the high-quality and efficient growth of China's economy by introducing advanced technology,equipment and management experience from abroad.At present,China is in an important period of industrial structure transformation and upgrading.The high added value,low energy consumption and less environmental pollution of the high-tech industry make it a national key development industry.The 19 th national congress of the communist party of China(CPC)called for technological innovation to lead China's economic development.This further affirms the importance of the development of high-tech industry in China's economic development.Therefore,foreign direct investment is still an important engine for the development of high-tech industries and one of the important driving forces for the economic development of China.However,in recent years,the growth of FDI in China is sluggish,and the growth rate of FDI in high-tech industries fluctuates.At the same time,China's environmental pollution problem is becoming more and more serious,which is bound to have a serious impact on the investment environment of FDI in high-tech industries.Therefore,it is very important for China's economic development to explore the internal influence mechanism of environmental pollution on FDI of high-tech industries and find the path to improve FDI of high-tech industries.First of all,this paper makes a general statistical analysis on the status quo of China's environmental pollution and FDI in high-tech industries.Then,this paper introduces environmental quality variables in the framework of D-S incomplete competitive market analysis to build a profit-maximizing investment choice model for high-tech foreign enterprises,and qualitatively analyzes that the decline of environmental quality will inhibit the increase of FDI in high-tech industries.Through the analysis of the natural environment quality of high and new technology industry investment environment,the influence of the environment quality factor is introduced into the cost function,from the perspective of the cost of new and high technology industries with foreign investment choice between environmental quality and mechanism analysis.Based on the analysis results of various influencing factors of the theoretical model,this paper proposes two hypotheses: 1.The better the environmental quality(that is,the less environmental pollution),the more FDI will be attracted to high-tech industries;otherwise,the less FDI will be attracted;2.Environmental regulation plays a regulating role in the relationship between environmental pollution and FDI in high-tech industries by affecting environmental pollution and FDI in high-tech industries.Then,this paper uses the mixed panel data of key cities and enterprises in China from 2003 to 2013 to empirically test the relationship between environmental pollution and FDI in high-tech industries.The regression results show that there is indeed a negative relationship between environmental pollution and FDI in high-tech industries.Through the analysis of regulation effect,it can be seen that the effect size of this effect is positively influenced by environmental regulation(regulation variable).Moreover,the influence of environmental pollution on FDI in this industry is also heterogeneous among regions,special economic zones and non-special economic zones.The reverse effect of environmental pollution on FDI in high-tech industries is very significant in the eastern region,but not in the central and western regions.In non-special economic zones,environmental pollution can significantly inhibit the inflow of FDI in high-tech industries,but not in special economic zones.Finally,on the basis of theoretical and empirical research,this paper puts forward the following countermeasures and Suggestions to improve the level of foreign direct investment in high-tech industries and promote sustainable economic development.First of all,to further improve the oversight system for environmental protection and mechanism,at the same time to strengthen the construction of form a complete set of city environmental protection infrastructure investment,improving the quality of regional environment,promote the development of economic and environmental benign circulation.Second,we should formulate stable and inclusive opening-up policies to create a loose and flexible investment environment.In addition,we will enhance the overall innovation capacity of society and accelerate the transformation and upgrading of industrial structure.Finally,"adjust measures to local conditions" to the implementation of the foreign investment policy,make the high and new technology industrial location choice of FDI in China has a larger,with balanced economic development among regions.